UAE business activity growth slows in June

Dubai, July 2, 2013

Growth of business activity in the United Arab Emirates' non-oil private sector slowed in June from a three-month high in the previous month, as expansion of output and new orders eased, a purchasing managers' survey showed on Tuesday.

The HSBC UAE Purchasing Managers' Index, which measures the performance of the manufacturing and services sectors, fell to 54.1 points last month from 55.3 in May.

"Although the data show a modest slowdown into the start of the hot summer months, the economy is still in growth mode with output still rising and employment gaining speed," said Simon Williams, chief economist for the Middle East at HSBC.

"The sharp slowdown in other emerging markets is a concern, but robust new orders figures suggest the UAE is likely to retain momentum for now, as strong domestic and regional demand compensates for weakness in Asia and beyond," he said.

UAE firms saw output growth drop to 54.5 points in June, the lowest level since November 2012, from 55.8 in the previous month. New orders were at 58.1 points, the weakest level since April 2012.

But employment growth across the UAE's non-oil private sector picked up slightly to 54.0 points in June from 53.3 in the previous two months.